Relevance: GS Prelims – Agriculture
What is PMFBY?
- Pradhan Mantri Fasal Bima Yojana (PMFBY) is the flagship crop insurance scheme of the Government of India.
- It was launched on 18 February 2016, replacing the National Agricultural Insurance Scheme (NAIS) and the Modified National Agricultural Insurance Scheme (MNAIS).
- The scheme aims to provide comprehensive insurance coverage against crop losses due to natural calamities, pests, and diseases.
- It is implemented by the Ministry of Agriculture and Farmers’ Welfare.
Objectives
- Provide financial support to farmers suffering crop losses.
- Stabilize farmers’ income to ensure continuity in farming.
- Encourage farmers to adopt modern agricultural practices.
- Protect farmers against production risks and strengthen food security.
Coverage
- Covers food crops (cereals, millets, pulses), oilseeds, and annual commercial and horticultural crops.
- Covers losses due to:
- Prevented sowing/planting.
- Standing crop damage caused by natural calamities, pests, and diseases.
- Localized calamities such as hailstorms, landslides, inundation, and cloudbursts.
- Post-harvest losses (up to 14 days) due to cyclones, unseasonal rainfall, and hailstorms.
Farmer’s Premium
- 2% of the sum insured for Kharif crops.
- 1.5% for Rabi crops.
- 5% for commercial and horticultural crops.
- The remaining premium is shared by the Central and State Governments.
Key Features
- Voluntary scheme for all farmers (since 2020).
- Uses Remote Sensing, Drones, Smartphones, GPS, and Satellite Imagery for faster crop loss assessment.
- No upper limit on government subsidy.
- Claims are directly transferred to farmers through Direct Benefit Transfer (DBT).
- Coverage is based on the Area Approach, with provisions for localized calamities and post-harvest losses.
Recent Initiatives
- Revamped PMFBY (2020):
- States made participation voluntary.
- Greater flexibility in scheme implementation.
- Adoption of advanced technologies for yield estimation.
- YES-TECH (Yield Estimation System based on Technology):
- Uses satellite data and remote sensing for accurate crop yield estimation.
- National Crop Insurance Portal (NCIP):
- A digital platform for enrolment, premium payment, claim settlement, and monitoring.
Conclusion
PMFBY is India’s flagship crop insurance scheme that safeguards farmers against agricultural risks while promoting technology-driven, resilient, and sustainable farming.
| This concept has been covered in article Rollout of Weather Information Network Data System (WINDS) |